Flag Pattern Sets a Directional Rally Beyond $0.12
The breakout of the flag pattern would indicate the end of the correction trend in Dogecoin. If there is an upswing, it will face significant supply pressure at $0.105 and $0.131. The 24-hour trading volume for Dogecoin is $523 million, showing a 6% gain.
During the current correction phase, the price of Dogecoin has been moving between two parallel walking trendlines, forming a flag pattern. This pattern suggests that the correction is temporary and meant to stabilize the price before the next leap.
Furthermore, the price of the coin is above the 38.25% Fibonacci retracement tool, indicating that the correction is healthy and buyers are still strong. Therefore, if you are bullish on Dogecoin, you should wait for a breakout from the upper trendline of the flag pattern.
If there is a post-breakout rally, it could push the price up by 12% to challenge the previous swing high of $1.05, and potentially continue to rise to $0.14.
Dogecoin Shows a Record-Breaking Increase in Address Activity
The “Addresses Stats” provide insights into the expansion of the cryptocurrency sector and the level of user participation in Dogecoin. Recent data from IntoTheBlock shows a significant increase in Dogecoin’s network dynamics.
Over the Course of Three Weeks:
- The number of active Dogecoin addresses rose from 60.47K to a recent high of 76.22K.
- The emergence of new addresses increased from 18.99K to an impressive 201.82K.
- Addresses with zero balance also saw a rise from 22.26K to 139.7K.
This surge in active and new addresses is at levels not seen since 2014, indicating a significant increase in interest and participation in the Dogecoin ecosystem.
- Average Directional Index: The ADX slope suggests that buying momentum may be nearing exhaustion, potentially leading to a minor pullback.
- Relative Strength Index: The daily RSI slope indicates a neutral short-term trend.
Hot Take: Should You Buy the Dip?
Dogecoin recently experienced a sharp correction after a seven-month rally. While the price has dropped by 14% in the last two weeks, this retracement may be a temporary breather before the next leap. The flag pattern indicates a potential directional rally beyond $0.12, but there may be significant supply pressure at certain levels. Additionally, Dogecoin has seen a record-breaking increase in address activity, demonstrating growing interest and participation in the cryptocurrency. However, it’s important to consider indicators like the Average Directional Index and Relative Strength Index for potential market trends. Ultimately, whether or not you should buy this dip depends on your own analysis and risk tolerance.
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